Note: This should not be taken as tax or legal advice
Many large employers are terminating traditional defined benefit retiree plans in favor of a defined contribution approach utilizing the individual market and Medicare.
This approach relies on health reimbursement arrangements (HRAs), which retirees can use to pay for health care expenses and Medicare Part B and Part D premiums
The following companies (among others) have already decided to make the switch:
- General Motors (GM)